This report covers high-end fashion apparel. Excluded from the report are leather goods, shoes and other branded accessories such as watches and jewellery. Although clothing in general represents a basic necessity, high-end fashion can be considered discretionary. The global high-end fashion market is, by definition, a market of leaders. Leading groups' main assets are their strong brands, which create attraction and desire for their products.

- What are the main markets?

Fashion consciousness, product quality, craftsmanship and the value of a brand are the main criteria driving luxury fashion purchases. Two main customer types can be identified:

-Wealthy consumers represent a small fraction of the population. They can easily afford luxury fashion and are less affected by changing economic conditions;

-Middle-class consumers buy fewer luxury items but are more numerous. They are more sensitive to macroeconomic conditions and changes in disposable income, but have an equally strong desire to acquire luxury goods.

- Who are the key players?

The high-end fashion industry is dominated by Western European labels, especially Italian and French ones. American labels often specialise in the premium segment, which aims at marketing strong brands on a larger scale. On the demand side, Asian consumers account for a significant share of demand, both through local markets and tourist purchases. Western Europe and, to a smaller degree, the USA are the other main markets.

- How intense is competition?

The global luxury apparel market is fairly fragmented with a few large multi-brand groups operating alongside a large collection of smaller (and often more dynamic) players. The rise of the internet has allowed a constellation of small niche brands to gain exposure with limited marketing budgets, while the rise of e-commerce reduces distribution difficulties.